Texas 2015 - 84th Regular

Texas House Bill HB2796 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R10460 JXC-F
2	2	By: King of Hemphill H.B. No. 2796
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of certain telecommunications providers
8	8	to commit to making infrastructure and network improvements in
9	9	exchange for support from the universal service fund; adding
10	10	provisions subject to a criminal penalty.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle C, Title 2, Utilities Code, is amended
13	13	by adding Chapter 53A to read as follows:
14	14	CHAPTER 53A. RURAL ADVANCED PLAN FOR INFRASTRUCTURE DEPLOYMENT
15	15	Sec. 53A.001. POLICY. In accordance with the policy stated
16	16	in Section 51.001(g), considering the differences in the geographic
17	17	and economic challenges posed by providing basic local
18	18	telecommunications services and competitive and advanced
19	19	telecommunications services to rural areas as opposed to urban
20	20	areas, the benefits incident to those services, the status of
21	21	universal service in the rural areas of this state, state and
22	22	national initiatives for widespread deployment of broadband
23	23	services, and the telecommunications services network and
24	24	infrastructure advancements needed to make possible the future
25	25	deployment of an electric smart grid in rural areas, it is the
26	26	policy of this state to:
27	27	(1) upgrade and maintain the telecommunications
28	28	services infrastructure in rural areas of this state in an effort
29	29	to:
30	30	(A) provide to each resident of this state a
31	31	network capable of providing access to basic local
32	32	telecommunications services and advanced telecommunications
33	33	services so that a majority of residents in rural areas have the
34	34	option to use those services; and
35	35	(B) ensure that each resident has advanced
36	36	telecommunications services to maintain the role of this state as a
37	37	leader in commerce and education;
38	38	(2) ensure that the residents of rural areas have
39	39	access to a wide range of advanced telecommunications services and
40	40	other competitive benefits in a manner and at prices similar to the
41	41	access available to residents in urban areas;
42	42	(3) provide the necessary infrastructure in rural
43	43	areas to support access to an array of telecommunications, data,
44	44	and video services, economic development and educational
45	45	opportunities, and telemedicine applications;
46	46	(4) provide the required underlying primary network
47	47	infrastructure to support major state and national energy policy
48	48	initiatives established to create an electric smart grid that
49	49	requires the support of an advanced telecommunications services
50	50	network;
51	51	(5) provide incentives and flexibility similar to
52	52	programs available in urban areas for small incumbent local
53	53	exchange companies that serve rural areas to complete a basic local
54	54	and advanced telecommunications services infrastructure that will
55	55	support universal service; and
56	56	(6) promote economic stabilization and growth in rural
57	57	areas through basic local and advanced telecommunications services
58	58	networks.
59	59	Sec. 53A.002. DEFINITIONS. In this chapter:
60	60	(1) "Advanced telecommunications services" includes
61	61	high speed, switched, broadband telecommunications service that
62	62	enables users to originate and receive high quality voice, data,
63	63	graphics, and video telecommunications.
64	64	(2) "Community center" means an organized public or
65	65	private entity that provides a location for specialized groups or
66	66	the general public to meet for group activities involving
67	67	community, educational, patriotic, political, public information,
68	68	recreational, religious, or social functions. The term includes
69	69	recreational centers, senior centers, youth centers, and publicly
70	70	owned meeting facilities. The commission may by rule designate
71	71	additional types of facilities or entities as community centers.
72	72	(3) "Educational institution" has the meaning
73	73	assigned by Section 57.021.
74	74	(4) "Electing provider" means a small provider that
75	75	elects to be subject to the infrastructure commitment and
76	76	corresponding regulation under this chapter.
77	77	(5) "Emergency services facility" means a facility
78	78	from which a person, including a firefighter, paramedic, emergency
79	79	medical technician, police officer, sheriff, constable, or other
80	80	state or federal law enforcement representative, responds to
81	81	emergencies, including 9-1-1 calls.
82	82	(6) "Library" means:
83	83	(A) a public library or regional library system,
84	84	as defined by Section 441.122, Government Code;
85	85	(B) a library operated by an institution of
86	86	higher education or a school district; or
87	87	(C) a library operated by a nonprofit
88	88	corporation, as defined by Section 441.221, Government Code.
89	89	(7) "Private network services" means
90	90	telecommunications services, including basic local
91	91	telecommunications services, broadband services, customized
92	92	services, and packaged network services.
93	93	(8) "Small provider" means:
94	94	(A) an incumbent local exchange company or
95	95	cooperative that on September 1, 2013, together with all local
96	96	exchange companies affiliated with the company or cooperative on
97	97	that date, served 31,000 or fewer access lines in this state; or
98	98	(B) a company or cooperative that is a successor
99	99	to a company or cooperative described by Subparagraph (A).
100	100	(9) "Smart grid" means infrastructure required to
101	101	produce an advanced electric energy grid system under the state and
102	102	national policy initiatives under the Energy Independence and
103	103	Security Act of 2007 (42 U.S.C. Section 17001 et seq.).
104	104	(10) "Telemedicine center" means a facility that is
105	105	equipped to transmit, by video, data, or voice service, medical
106	106	information for the diagnosis or treatment of an illness or disease
107	107	and that is:
108	108	(A) owned or operated by a public or
109	109	not-for-profit hospital; or
110	110	(B) owned by a state-licensed health care
111	111	practitioner and operated on a nonprofit basis.
112	112	Sec. 53A.003. CHAPTER CONTROLS. To the extent this chapter
113	113	conflicts with Chapter 53, this chapter controls.
114	114	Sec. 53A.004. ELECTION. (a) A small provider that is not
115	115	an electing company under Chapter 58 or 59 as of September 1, 2013,
116	116	may elect to be subject to this chapter and make the corresponding
117	117	infrastructure commitment under this chapter by notifying the
118	118	commission in writing of the election.
119	119	(b) The notice must include the information required by
120	120	Section 56.034 and a statement that the provider agrees to fulfill
121	121	the infrastructure commitment prescribed by this chapter.
122	122	(c) A small provider may not revoke an election.
123	123	Sec. 53A.005. INFRASTRUCTURE COMMITMENT. (a) After the
124	124	date the commission receives notice of the small provider's
125	125	election under Section 53A.004, the electing provider shall:
126	126	(1) commit to make all reasonable efforts and
127	127	investments in this state necessary to improve or upgrade network
128	128	infrastructure in the manner described by this chapter;
129	129	(2) work to ensure that the electing provider's
130	130	network backbone interoffice facilities are capable of supporting
131	131	services that include, at a minimum, broadband speeds that are not
132	132	less than the minimum speeds required by the Federal Communications
133	133	Commission, voice services, video signal at a quality level
134	134	comparable to a television broadcast signal, and other reasonably
135	135	anticipated basic local or advanced telecommunications services
136	136	that may become available to the public in the future; and
137	137	(3) work to ensure that all new or upgraded local loops
138	138	that are the subject of an equitable request for service are capable
139	139	of supporting basic local and advanced telecommunications
140	140	services, including broadband service at a speed that is not less
141	141	than the minimum broadband speed required by the Federal
142	142	Communications Commission.
143	143	(b) To meet the requirements of this chapter, an electing
144	144	provider may use any technology capable of achieving the required
145	145	level of service capabilities. This includes both new construction
146	146	and upgrades to existing facilities.
147	147	Sec. 53A.006. EQUITABLE REQUESTS FOR SERVICE. (a) For the
148	148	purposes of this chapter, a request for service is considered an
149	149	equitable request for service only if provision of the requested
150	150	service by the electing provider receiving the request is
151	151	technologically and economically feasible, including the provision
152	152	of network extensions or upgrades necessary to support any services
153	153	the requesting entity is receiving at the time the request is made
154	154	and other reasonably anticipated basic local or advanced
155	155	telecommunications services that may become available to the public
156	156	in the future.
157	157	(b) An electing provider shall determine whether a request
158	158	for service is an equitable request. If the electing provider
159	159	determines that the request is not an equitable request, the
160	160	electing provider shall provide written notice of that
161	161	determination to the requesting person. The requesting person may
162	162	appeal to the commission a determination that a request for service
163	163	is not an equitable request.
164	164	(c) An electing provider may deny a request that is not an
165	165	equitable request. An infrastructure commitment associated with a
166	166	denied request is waived.
167	167	(d) If the electing provider or the commission determines
168	168	that a request for service is an equitable request, the electing
169	169	provider shall, regardless of technology used, work to ensure that
170	170	the provider meets the commitments prescribed by Section 53A.005.
171	171	Sec. 53A.007. PRIVATE NETWORK SERVICES FOR CERTAIN
172	172	ENTITIES. (a) An electing provider shall, after receiving an
173	173	equitable request for service under Section 53A.006, provide
174	174	private network services to:
175	175	(1) a community center;
176	176	(2) an educational institution;
177	177	(3) a library;
178	178	(4) a public or not-for-profit emergency services
179	179	facility;
180	180	(5) a telemedicine center; or
181	181	(6) a legally constituted consortium of entities
182	182	listed in this subsection.
183	183	(b) The electing provider shall provide the private network
184	184	services for the private and sole use of the receiving entity or
185	185	entities. The provider may provide the services jointly with a
186	186	facility that is used to provide another service to another
187	187	customer.
188	188	(c) The entities described by Subsection (a) are a special
189	189	class of customers for the purposes of the private network for
190	190	distance learning, telemedicine, and information-sharing uses.
191	191	(d) An electing provider may provide a private network
192	192	service under a customer-specific contract.
193	193	(e) The entities described by Subsection (a) warrant
194	194	preferred rate treatment. An electing provider shall provide
195	195	private network services to those entities at a reduced rate equal
196	196	to 65 percent of the amount owed under the customer-specific
197	197	contract or under the otherwise applicable tariffed rate after
198	198	applicable federal discounts are applied.
199	199	(f) On request of an electing provider, the commission shall
200	200	provide reimbursement through the universal service fund, in
201	201	addition to monthly support received under Section 56.034(d)(1) or
202	202	(2), for reduced rates for private network services for entities
203	203	described by Subsection (a). The amount of reimbursement shall be
204	204	equal to the difference between the electing provider's
205	205	customer-specific contract or otherwise applicable tariffed rate
206	206	for that service, and the reduced rate offered for that service
207	207	under this chapter.
208	208	Sec. 53A.008. WAIVER OF INFRASTRUCTURE COMMITMENT
209	209	REQUIREMENTS. (a) On the request of an electing provider, the
210	210	commission may waive an infrastructure commitment requirement
211	211	under Section 53A.005 or 53A.009 or a requirement under an
212	212	equitable request for service under Section 53A.006.
213	213	(b) The commission may grant a waiver in relation to an
214	214	equitable request for service under Section 53A.006 if the electing
215	215	provider demonstrates that the requested investment or service
216	216	places an undue burden on the universal service fund or the electing
217	217	provider.
218	218	(c) Before granting a waiver under Subsection (b), the
219	219	commission must consider the public benefits that would result from
220	220	the investment or service, the willingness and ability of the
221	221	requestor to pay a reasonable aid to construction charge, and the
222	222	allowance of additional universal service fund support to allow
223	223	timely completion of the request.
224	224	(d) The commission shall review a waiver granted under
225	225	Subsection (a) or (b) at least once every three years if the
226	226	corresponding requirement or the corresponding equitable request
227	227	for service remains pending. The commission may not extend a waiver
228	228	until the commission reviews the factors listed in Subsection (c),
229	229	the technical ability of the provider to meet the waived
230	230	requirement, and the effect of extending the waiver on the
231	231	universal service fund.
232	232	Sec. 53A.009. PLAN. (a) An electing provider shall develop
233	233	and implement a five-year infrastructure investment plan to
234	234	maintain and upgrade existing network facilities to ensure
235	235	connectivity capable of meeting the standards prescribed by this
236	236	chapter.
237	237	(b) The plan must include a description of the proposed
238	238	improvements or upgrades to the electing provider's network
239	239	throughout its service area that will help the provider meet
240	240	infrastructure commitments and customer needs.
241	241	(c) An electing provider who is subject to a requirement
242	242	under federal law to file a five-year plan is not required to create
243	243	an additional plan under this section.
244	244	Sec. 53A.010. PROGRESS AND ACCOUNTABILITY REPORT. (a) An
245	245	electing provider shall file annually with the commission a report
246	246	on the provider's progress toward fulfilling the provider's
247	247	infrastructure commitment.
248	248	(b) The report must include:
249	249	(1) the plan described by Section 53A.009 or the
250	250	provider's federally prescribed five-year plan;
251	251	(2) a description of the provider's progress on
252	252	implementing the plan, how the provider is using universal service
253	253	support funds to improve service quality, coverage, or capacity,
254	254	and an explanation detailing why improvements or targets for the
255	255	previous calendar year have not been met, including adjustments for
256	256	evolving standards;
257	257	(3) a summary of financial data for the previous
258	258	calendar year that includes total company data, including:
259	259	(A) plant-specific operations expenses;
260	260	(B) plant non-specific operations expenses;
261	261	(C) customer operations expenses;
262	262	(D) corporate operations expenses;
263	263	(E) depreciation and amortization expenses;
264	264	(F) other operating expenses;
265	265	(G) total telecom plant in service;
266	266	(H) total property held for future use; and
267	267	(I) total telecom plant under construction; and
268	268	(4) average network capacity and speed capabilities
269	269	available to customers.
270	270	(c) A report filed under this section is confidential and
271	271	not subject to disclosure under Chapter 552, Government Code.
272	272	(d) The commission shall monitor the progress of each
273	273	electing provider through the reports submitted under this section.
274	274	Sec. 53A.011. UNIVERSAL SERVICE FUND RECOVERY. (a) An
275	275	electing provider is eligible to receive support from the universal
276	276	service fund as provided by this chapter and Section 56.034.
277	277	(b) This chapter does not affect the eligibility of an
278	278	electing provider to receive support under Section 56.025.
279	279	SECTION 2. Section 56.021, Utilities Code, is amended to
280	280	read as follows:
281	281	Sec. 56.021. UNIVERSAL SERVICE FUND ESTABLISHED. The
282	282	commission shall adopt and enforce rules requiring local exchange
283	283	companies to establish a universal service fund to:
284	284	(1) assist telecommunications providers in providing
285	285	basic local telecommunications service at reasonable rates in high
286	286	cost rural areas under two plans:
287	287	(A) the Texas High Cost Universal Service Plan
288	288	(16 T.A.C. Section 26.403); and
289	289	(B) the Small and Rural Incumbent Local Exchange
290	290	Company Universal Service Plan (16 T.A.C. Section 26.404);
291	291	(2) reimburse the telecommunications carrier that
292	292	provides the statewide telecommunications relay access service
293	293	under Subchapter D;
294	294	(3) finance the specialized telecommunications
295	295	assistance program established under Subchapter E;
296	296	(4) reimburse the department and the commission for
297	297	costs incurred in implementing this chapter and Chapter 57;
298	298	(5) reimburse a telecommunications carrier providing
299	299	lifeline service as provided by 47 C.F.R. Part 54, Subpart E, as
300	300	amended;
301	301	(6) finance the implementation and administration of
302	302	an integrated eligibility process created under Section 17.007 for
303	303	customer service discounts relating to telecommunications
304	304	services, including outreach expenses the commission determines
305	305	are reasonable and necessary;
306	306	(7) reimburse a designated provider under Subchapter
307	307	F;
308	308	(8) reimburse a successor utility under Subchapter G;
309	309	[and]
310	310	(9) finance the program established under Subchapter
311	311	H; and
312	312	(10) assist telecommunications providers that are
313	313	small and rural local exchange companies in providing basic local
314	314	and advanced telecommunications services in high cost rural areas
315	315	through fulfilling infrastructure commitments under Chapter 53A,
316	316	as provided by Section 56.034.
317	317	SECTION 3. Subchapter B, Chapter 56, Utilities Code, is
318	318	amended by adding Section 56.034 to read as follows:
319	319	Sec. 56.034. SUPPORT FOR RURAL ADVANCED PLAN FOR
320	320	INFRASTRUCTURE DEPLOYMENT. (a) Support for the Rural Advanced
321	321	Plan for Infrastructure Deployment is available to
322	322	telecommunications providers who are electing providers under
323	323	Chapter 53A.
324	324	(b) Not later than January 1, 2017, the commission shall
325	325	implement a mechanism for electing providers to transition support
326	326	from the Small and Rural Incumbent Local Exchange Company Universal
327	327	Service Plan to the Rural Advanced Plan for Infrastructure
328	328	Deployment. Until the mechanism is in place, an electing
329	329	provider's support level may not be decreased from the level the
330	330	provider receives on the date the commission receives notice under
331	331	Section 53A.004 of the provider's election.
332	332	(c) When a provider notifies the commission that it elects
333	333	to be subject to Chapter 53A, the provider shall request that the
334	334	commission determine and disburse support to the provider under
335	335	Subsection (d)(1) or (d)(2).
336	336	(d) An electing provider may request that the commission
337	337	disburse funds to the provider in fixed monthly amounts based on:
338	338	(1) the company's annualized amount of recovery from
339	339	the universal service fund for the fiscal year ending on August 31,
340	340	2017, but only if the commission receives notice under Section
341	341	53A.004 of the provider's election on or before September 1, 2017;
342	342	or
343	343	(2) an annualized support amount determined to be
344	344	sufficient, based on the Federal Communications Commission cost
345	345	study and independently audited financials of the provider for the
346	346	most recently ended fiscal year and when considered with other
347	347	revenues, to permit the company the opportunity to earn a
348	348	reasonable return in accordance with Section 53.051.
349	349	(e) The commission shall determine the initial support
350	350	level not later than the 60th day after the date the commission
351	351	receives the notice under Section 53A.004.
352	352	(f) An electing provider who requests to have the provider's
353	353	initial support level determined and disbursed under Subsection
354	354	(d)(1) may, not earlier than the first anniversary of the date of
355	355	the determination of initial support level, make a one-time request
356	356	to have the provider's fixed monthly support determined and
357	357	disbursed under Subsection (d)(2). Not later than the 60th day
358	358	after the date the commission receives a request under this
359	359	subsection, the commission shall recalculate the amount of the
360	360	electing provider's support as provided by Subsection (d)(2) and
361	361	the electing provider is considered to have made a request under
362	362	Subsection (d)(2) for the purposes of all future adjustments. This
363	363	subsection does not limit a provider's ability to make a request
364	364	under Subsection (g).
365	365	(g) Not earlier than the first anniversary of the date of
366	366	the determination of an initial support level the electing provider
367	367	will receive under Subsection (d), or after an election under
368	368	Subsection (f), the commission may, only for good cause and on its
369	369	own motion, or shall, on the written request of the provider,
370	370	initiate a proceeding to recalculate the annual support amount to
371	371	be used as the basis for the fixed monthly support amounts. The
372	372	commission shall base the recalculation under this subsection on an
373	373	annualized support amount determined to be sufficient, when
374	374	considered with other revenues, to permit the company the
375	375	opportunity to earn a reasonable return in accordance with Section
376	376	53.051. Except for good cause, the commission may not initiate a
377	377	proceeding to adjust a provider's support under this subsection
378	378	more frequently than once every three years.
379	379	(h) The commission shall adjust support disbursed under
380	380	Subsection (d)(2) automatically every three years using the
381	381	calculation prescribed by Subsection (d)(2). An adjustment
382	382	proceeding under this subsection must be completed in not more than
383	383	60 days.
384	384	SECTION 4. This Act takes effect September 1, 2015.